\u3000\u30 Shenzhen Quanxinhao Co.Ltd(000007) 15 Zhongxing Shenyang Commercial Building Group Co.Ltd(000715) )
Key points
The company’s revenue in 2021 increased by 1.11% year-on-year, and the net profit attributable to the parent company increased by 40.09% year-on-year. On March 30, the company released its annual report for 2021: the operating revenue in 2021 was 868 million yuan, with a year-on-year increase of 1.11%, and the net profit attributable to the parent company was 136 million yuan, equivalent to 0.33 yuan of fully diluted EPS, with a year-on-year increase of 40.09%, and the net profit deducted from the non parent company was 116 million yuan, with a year-on-year increase of 31.68%.
In terms of splitting in a single quarter, 4q2021 achieved an operating revenue of 208 million yuan, a year-on-year decrease of 10.12%, a net profit attributable to parent company of 50 million yuan, equivalent to a fully diluted EPS of 0.12 yuan, a year-on-year decrease of 35.82%, and a deduction of non attributable net profit of 47 million yuan, a year-on-year decrease of 2.97%.
In 2021, the company’s comprehensive gross profit margin increased by 2.94 percentage points, and the period expense rate increased by 0.35 percentage points. In 2021, the company’s comprehensive gross profit margin was 55.14%, a year-on-year increase of 2.94 percentage points. In terms of single quarter split, the comprehensive gross profit margin of 4q2021 company was 58.79%, up 0.71 percentage points year-on-year.
In 2021, the company’s expense ratio was 33.81%, with a year-on-year increase of 0.35 percentage points, of which the sales / management / financial expense ratio was 5.73% / 28.28% / – 0.20% respectively, with a year-on-year change of + 0.27 / – 1.17 / + 1.26 percentage points respectively. 4q2021’s expense rate during the period was 25.17%, with a year-on-year increase of 0.70 percentage points. Among them, the sales / management / financial expense rate was 6.14% / 19.11% / – 0.08% respectively, with a year-on-year change of + 0.74 / – 1.65 / + 1.60 percentage points respectively.
Strengthen online construction, fine management and control management expenses
At the same time, we will increase the role of “two-dimensional reviews” and “small reviews” online, and strengthen the promotion of the company’s rights and interests in 2021. Offline, the company optimized the brand portfolio and improved the image of the counter. In 2021, the company sold more than 60 brands with more than 10 million. In terms of cost control, the company reduced costs and increased efficiency through fine management, and vigorously carried out repair and recycling and technological innovation. The management expense rate of the company decreased by 1.17 percentage points in 2021.
Raise the profit forecast and maintain the “overweight” rating
The company’s performance exceeded expectations, mainly due to the continuous improvement of management efficiency and the continuous decline of management expense rate after the mixed reform, so as to improve the profit space of the company. We raised the prediction of EPS of the company from 25% / 13% in 2022 / 2023 to 0.36/0.38 yuan, and added the prediction of EPS of the company in 2024 to 0.40 yuan. The company actively develops online channels and continuously improves member stickiness, which is conducive to consolidating the company’s competitive advantage in Shenyang and maintaining the “overweight” rating.
Risk tip: the operation of the main stores did not meet the expectations, and the operation improvement after the mixed reform did not meet the expectations.
